About 55 million Americans are expected to get Social Security benefits this year. Those benefits will total roughly $727 billion.
But last year, funding for Social Security took an alarming turn for the worse. The bad economy caused benefits paid to exceed tax revenue raised for Social Security. Weak economic activity forced down tax revenue, and many Americans who have lost jobs began seeking Social Security benefits sooner than they thought they would.
That might seem like a problem that would be resolved when the economy revives someday.
But demographics are an even bigger threat to Social Security. About 75 million baby boomers are starting to retire, which will place enormous strain on the system as it stands today. Fewer and fewer people, relatively speaking, will be working to support more and more retirees who are relying on Social Security.
Despite these factors, many refuse to face reality. They say Social Security can be left pretty much as it is with no negative effects.